It’s a rapidly changing world today. Lot has
already been changed. Marketing today is a lot more competitive with an ease of
tool and lot more new channels and ideas, thanks to Information Technology.
Conventional marketing techniques still has some value but Digital Marketing is
the name of the game now.
It’s getting hard for entrepreneurs to decide
about Digital Marketing because it’s relatively new with not common success
stories.
Here are basic Key Performance Indicators, or
KPIs, that will help you for your digital advertising campaigns.
These are divided into three phases;
I.
Awareness
II.
Engagement
III.
Conversion
1.
Awareness: Learning Phase
At this stage, the goal is to build awareness of your
brand, service or product among your target audience. The aim is to reach as
many relevant people as possible, inform and stay top–of-mind among your
audience.
Awareness-focused channels are:
·
Display
·
In-stream video
·
Paid social ads
·
Advanced TV
·
Audio.
The primary KPIs you should consider for an awareness
campaign for these channels are:
1. CPM
The goal is to serve impressions to your intended
audience at the right frequency with your allocated budget. While you assess
your CPM, keep inventory quality top of mind.
CPM is how you measure the number of people who see your
ad. For example, a $2 CPM means that it costs $2 to put your ad in front of
1,000 people.
Viewability
Optimize toward viewability standards so that the ads
appear in spaces that are in-view to your target audience.
Measuring viewability is a way to determine the general
quality of your ad placements. If you have 100% viewability for desktop
display, you are most certainly serving ads on fraudulent websites (or you are
being very annoying). Fraud, such as ad stacking, makes an ad “viewable”
without the user ever seeing it. When you optimize for 100% viewability, you
encourage these types of ad placements.
2.
Engagement: Consideration Phase
During the engagement phase the aim is to influence
consideration for your brand, product or service over your competitors.
You want your target audience to … ENGAGE … with your ads
and associated landing pages, learning more about what you have to offer over
your competitors.
Engagement focused channels are:
·
Display
Paid social
Native
Paid search
The primary KPI you should consider for an engagement
campaign is:
Cost per Click (CPC)
At its core, CPC provides insight into the effectiveness
of ads. By optimizing to a low CPC, you’re lowering the amount of money you pay
to get someone to click your ad. A low CPC indicates an ad is effective at
getting your target audience to click.
Clicks measure when a user clicks your ad. That’s it.
Sessions measure sets of time spent on your page. Clicks often lead to
sessions, but there is much more nuance to it.
3.
Conversion: Action Phase
At the bottom of the funnel, you have really honed in on
the portion of your target audience who are most likely to take action.
Success at this stage is heavily reliant on successfully
moving your audience through the two upper phases. However, if you’ve adequately
raised awareness and garnered engagement, your audience is likely to take that
final step. Optimizations at this phase should be focused on driving that
action.
Conversion channels are:
·
Display
·
Paid social
·
Paid search
The primary KPI you should consider for a conversion
campaign is:
Cost per Action (CPA)
Optimizing toward the cost of advertising based on your
target audience taking a desired action.
A low CPA means you’re paying little for a lot of
conversions. This in turn means your CPM is probably pretty high because you’re
only targeting people that are likely to convert.
If you do achieve a low CPA, you know you’ve nailed your
targeting, messaging and strategy for driving conversions.
